Sportradar reported double-digit revenue growth Tuesday, with its core betting data business continuing to expand days after last week’s sharp stock selloff tied to allegations it works with illegal gambling companies.
The sports technology and data provider posted first-quarter revenue of €347 million ($375 million), up 11% year-over-year, while adjusted EBITDA rose 12% to €66 million ($71 million). Sportradar reiterated its full-year outlook, calling for 23% to 25% revenue growth on a constant currency basis.
The earnings call was moved to Tuesday from May 6 after two reports from short sellers suggested the company was operating in illegal markets, which sent the stock spiraling more than 20% last Wednesday.
Shares of Sportradar closed at $12.35 Tuesday, down 11.4% from Monday to a new 52-week low on more than 3.5 times its average daily volume.
Betting drives Sportradar growth
Growth was driven by Sportradar’s betting-focused segment, with Betting Technology & Solutions revenue increasing 15% to €288 million ($311 million). Within that, Betting & Gaming Content, the company’s core data product sold to sportsbooks, rose 20%.
Managed Betting Services declined 2%, which the company attributed to unfavorable sporting outcomes during the quarter. U.S. revenue increased 4% year-over-year but declined as a share of total revenue, falling to 26% from 28% a year earlier as international markets drove the majority of growth.
The results come after short seller reports last week alleged that a significant portion of Sportradar’s revenue is tied to unregulated betting markets, which the company has dneied.
CEO escalates response to unregulated claims
CEO Carsten Koerl reiterated that stance during Tuesday’s earnings call and in a public LinkedIn post, where he called the reports an “unfounded attack” and said they were designed to “create panic” and pressure the company’s stock.
“Unfortunately, these actors strive on misinformation and repackaging historical allegations to drive down company stock prices at the expense of long-term focused investors,” Koerl said.
Koerl, who founded Sportradar in 2001 after launching sportsbook operator bwin in the late 1990s, framed the criticism as a challenge to both his personal reputation and the company’s role in the global sports betting ecosystem.
He emphasized that Sportradar works with licensed operators and maintains “rigorous compliance processes” across jurisdictions.
“We do not work with black market operators,” Koerl said. “For the gray market, we have a solid compliance structure in place, and we only work with licensed operators.”
